A developer continues to work to secure financing to turn the former Alexander Lumber yard into a $69 million mixed-use development in downtown Oswego.
“While we are frustrated with the delay this summer, we are understanding that projects of this scale take time,” Oswego Village Administrator Dan Di Santo said.
Geneva-based developer Shodeen Group LLC, in a redevelopment agreement with the village, has approval to build two six-story buildings with luxury apartments on the upper floors and commercial space on the street level on the north corner of Route 34 and Adams Street. The project includes construction of a parking facility the village would own.
The property is in the Main Street and Washington Street tax increment financing district.
The village in December 2016 purchased 59 S. Adams St. for almost $1.5 million as a way for the village to have control over the development of the parcel.
In 2017, trustees approved a purchase and sale agreement with Shodeen for the project.
“Shodeen is still waiting for final financing approval from their lender,” Di Santo said.
The village is confident the project will proceed, he said.
“Given our conversations with Shodeen and their lender we are not concerned if the project will happen, but rather when it will happen,” Di Santo said.
Shodeen has not yet closed on the Alexander Lumber property at 59 S. Adams, Di Santo said.
“The village still owns the property and will not close with Shodeen until they finalize their financing and post surety for the public improvements,” Di Santo said.
Around this time last year Shodeen received an extension on the project to get additional time to secure financing. Shodeen is still within a three-year construction window per the redevelopment agreement, he said.
“We believe that Shodeen will close on the Alexander Lumber property within the next 30 days, with construction commencing immediately thereafter,” Di Santo said.
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The redevelopment agreement between the village and developer has safeguards, Di Santo said.
“At this time we feel confident that the development will occur,” Di Santo said.
The developer conceivably could walk away but at a considerable loss of investment, Di Santo said. The Shodeen Group has purchased the former residential properties along Adams Street and they have made an investment in preparing construction documents for the project, he said.
It’s in the best interests of the village for the project to begin sooner than later, he said.
“The longer the project takes to begin, the longer until it is complete,” he said.
He remains hopeful that work will start soon.
“We still believe construction should begin within the next month,” he said.
Linda Girardi is a freelance reporter for The Beacon-News.